TAIPEI (TVBS News) — Deputy Minister of Transportation and Communications Allen Hu said Monday (May 6) that the Taiwan Railway Corporation (TRC) is studying a plan to increase ticket prices, which is expected to be proposed in the second half of the year.
The TRC's current fare is calculated based on a formula approved by the Legislative Yuan, with a return rate of 3% to 5% of costs. However, the fare has yet to be adjusted for 29 years.
According to a study commissioned by the TRC, if the fare is calculated based on a return rate of 3% to 5%, the increase in ticket prices would be significant, with a 3% return rate alone leading to a rise of more than 30% to 40%.
The Legislative Yuan Transportation Committee invited the Ministry of Transportation and Communications and the TRC to report on the proposed fare increase and efforts to improve train punctuality on the same day.
Before the meeting, Hu told the media that adjusting the TRC's ticket prices is essential after the company's restructuring.
Hu said that the TRC had proposed several fare adjustment plans. Still, the proposals were deemed incomplete because they did not consider basic operating conditions, changes in external socio-economic factors, and changes in transportation supply and demand. Therefore, the TRC is expected to conduct a comprehensive review.
Hu clarified that recent media reports on various TRC fare adjustment plans are based on details discussed in the past, not the current plan. The plan currently under study is expected to be proposed in the second half of the year.